Fed hawks outweigh dip-buyers, Netflix (NFLX Stock) earnings in focus [Video]
|Market sentiment is mixed. There is a certain will to buy a dip in US indices, yet the aggressive hawkish Federal Reserve (Fed) pricing doesn’t allow the appetite to get restored. It results in hectic pricing as the US yields go up.
The sharp rise in US yields is the number one reason pushing the stock indices lower since the start of this year, and the major indices are much more vulnerable to interest rate hikes now than they were before, because the Big Tech has an increased weight in the indices, and they are vulnerable to rate hikes.
Limited risk appetite and mounting tensions between Ukraine and Russia support a rise in gold prices despite the rising US yields.
Ukraine-Russia tensions, combined with OPEC+ struggle to revive output are also giving an extra push to the oil bulls.
Strong earnings are the only hope for the equity bulls in the short-run. The bank earnings have been strong, but not perfect.
Netflix will be the first FAANG stock to reveal its Q4 results. The expectations are soft, while the tech stocks don’t have the luxury of deceiving their investors at an environment of rising Fed expectations, so a softer-than-expected set of results could further hammer the investor appetite.
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